Body Corporate Meaning and Role in Australia

In Australia, the term “body corporate” refers to a legal entity that is responsible for managing and administering common property in a strata scheme. This entity is usually established by the developer of the strata scheme and is typically known as the owner’s corporation. It consists of all the owners of lots in the scheme, who jointly own the common property. The body corporate has a number of important roles, which are set out in the legislation.

What is a Body Corporate?

A body corporate is a legal entity that exists to manage a property or properties. In most cases, a body corporate is created when a property is strata titled. A strata title allows for the horizontal division of a property into units, with each unit owner having an undivided share in the common property. The common property includes areas such as hallways, lifts, gardens, and swimming pools. A body corporate is responsible for the management and maintenance of the common property.

Body Corporate Responsibilities in Qld

The body corporate is responsible for the management and maintenance of the common property and common services, and for ensuring that owners comply with the rules of the scheme.

The body corporate must act in the best interests of all owners and must exercise its powers and perform its duties in good faith. It must also keep accurate records of its activities and finances, and must provide owners with information about their rights and responsibilities.

The body corporate has a number of important responsibilities, including:

– Maintaining the common property and common services

– Ensuring compliance with the rules of the scheme

– Keeping accurate records

– Providing information to owners

– Acting in the best interests of all owners

The benefits of body corporate

As a registered strata scheme, a body corporate provides many benefits to its members. These benefits include:

– Improved property values: A well-managed strata scheme can result in increased property values for all owners.

– Enhanced safety and security: A body corporate can help to improve the safety and security of the property by arranging for common areas to be well lit and maintained, and by employing security personnel.

– Improved amenity: A body corporate can help to improve the amenity of property by maintaining common areas and arranging for the provision of amenities such as swimming pools, gyms, and function rooms.

– Cost savings: A body corporate can help to save money for owners by negotiating bulk discounts on insurance, maintenance contracts, and utilities.

– Professional management: A body corporate is required to appoint a professional strata manager to oversee the day-to-day running of the scheme. This can provide peace of mind for owners, knowing that their investment is being professionally managed.

Conclusion

The role of the body corporate is to manage and administer the common property of a strata scheme. This includes maintaining the common property, levying strata fees, organizing insurance, and ensuring that owners comply with the by-laws. The body corporate is responsible for ensuring that the strata scheme runs smoothly and efficiently so that everyone can enjoy living in their home or investment property.

Read Further:

Understanding The Brisbane Body Corporate Regulations

Understanding The Gold Coast Body Corporate Regulations

Important Reasons You Need Strata Building Management

Why It’s Important To Change Your Strata Manager

Why You Need Body Corporate Managers